---------- Forwarded message ---------- Date: Thu, 2 Oct 1997 16:41:34 -0400 (EDT) From: [EMAIL PROTECTED] Reply-To: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: The Future of the Internet is in Question as WorldCom Attempts Takeover PRESS RELEASE TAO Communications Stages Takeover Bid for MCI and WorldCom 42% Premium Over Current Stock Price Significant Synergies Anticipated Accelerates Local and International Democracy Toronto Canada, Oct 2 1997 Toronto based trans-national not-for-profit TAO Communications is staging a takeover of telecom conglomerates MCI and WorldCom. TAO Communications, a division of The Way UnLtd., operates on behalf of the public interest, and makes the bid as a defence of the open networks embedded within the Internet. The two companies, MCI and WorldCom, own and control the majority of the Internet Infrastructure, and combined the duo will be strategically positioned to influence the emerging network economy. TAO Communications has decided to make its bid as an effort to both highlight the increasing corporate concentration of media and communications, as well as continue the struggle for democratic and universally accessible media. If the takeover is successful TAO promises to equally redistribute shares in the newly formed company to every individual living within proximity of either MCI's or WorldCom's infrastructure. Backed by large unnamed institutions, TAO Communications' bid is reportedly twice the size of either BT PLC's or WorldCom's bid for MCI. "We thought of just bidding for MCI, but while we're at it we might as well pick up WorldCom as well. That way we can reclaim the Internet and return the public interest to the networks at the same time." said TAO Communications' CEO Indiva Dual. Under the banner of 'Convergence' the telecommunications industry is consolidating itself, and accumulating substantial political power. Three cartels are emerging as the landlords of the Global Information Society: AT&T, Global One (Sprint, Deutche Telecom, and France Telecom), and Concert (BT PLC, NT&T, Stentor, and MCI). Innovations in technology are creating a media environment in which all communications may be created and distributed within the same system. Whether termed the 'Information Superhighway' or the 'Internet' this emerging system will play increasing prominence in our Global Village. Whomever controls this environment will have political, economic, and cultural control over society. During a press conference on Thursday in Toronto, TAO CEO Indiva Dual expressed concerns over the consolidation of communications: "Somebody has to respond on behalf of the public interest, and question the huge amount of power held by a handful of corporations. We're enacting this take-over bid as a means of divesting power from the cartels and reclaiming what we see as public space." Indiva Dual also cited Article 19 of the Universal Declaration of Human Rights: "Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media regardless of frontiers" Members of TAO Communications will be participating in the Media and Democracy Congress to be held in New York City between Oct 16th and 19th. A gathering of over 1000 individuals and groups involved in media, and concerned with democracy, the Congress will continue grass roots and multilateral efforts to organize against corporate media concentration, including the International Federation of Independent Media. If successful, the networks will be opened up, and the public's right to communicate and exist freely within emerging media environments will be reclaimed and renewed. Indiva Dual ended the press conference by stating: "We don't want to own the Internet, we want to give it away for free. The Internet isn't about profits, it's about people." For more info contact TAO Communications: 416-812-6765 [EMAIL PROTECTED] http://www.tao.ca/ http://www.mci.com/ http://www..wcom.com/ http://www.bt.com/ http://www.att.com/ http://www.mediademocracy.org/ http://www.negativland.com/ http://www.postindustrial.com/exec/exec.htm This material is copyright 1997 TAO Communications All Rights Democratically Defended Possession of this document is permissable, except in the case of any telecommunications corporation with a revenue above $1 million US Dollars, in which case a charge of US$1000 per byte will be levied for any copy possessed or reproduced. -30- ---------- Forwarded message ---------- Date: Thu, 2 Oct 1997 10:55:54 -0400 From: Kevin Taglang <[EMAIL PROTECTED]> Reply-To: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: WorldCom-related Headlines for 10/2/97 Communications-related Headlines for 10/2/97 WorldCom Bids for MCI WSJ: Ring Leader: WorldCom's MCI Bid Alters Playing Field For Telecom Industry WSJ: BT's Global Strategy Hits Wall in WorldCom Bid WSJ: Would WorldCom-MCI Deal Lift Tolls on Net? WSJ: WorldCom Bid Raises Question: Who's Next? TelecomAM: WorldCom Stages $30 Billion Takeover Bid for MCI WP: WorldCom Rising Fast by Acquisitions WP: Upstart Rival Surprises MCI With $30 Billion Merger Bid NYT: Upstart Offering $30 Billion To Buy MCI, Using Stock NYT: A Long-Distance Visionary ********************************************* * WorldCom Bids for MCI * ********************************************* Title: Ring Leader: WorldCom's MCI Bid Alters Playing Field For Telecom Industry Source: Wall Street Journal <http://wsj.com/> (A1) Author: Steven Lipin & John Keller Issue: Mergers Description: WorldCom, the nation's fourth-largest long distance provider, unveiled a $30 billion bid to purchase MCI, a company more than three times as large as WorldCom. WorldCom has revenues of about $7 billion/year. In just the past three years, WorldCom has made five big deals totaling $20 billion plus a $2.4 billion stock deal to acquire Brooks Fiber Properties of St. Louis. Title: BT's Global Strategy Hits Wall in WorldCom Bid Source: Wall Street Journal <http://wsj.com/> (A3) Author: Gautam Naik Issue: Mergers Description: British Telecommunications' global strategy, dubbed Concert, may unravel with WorldCom's bid to buy MCI. BT is unlikely to match WorldCom's bid which is worth $9 billion more. BT recently scaled back its original offer to buy the 80% stake in MCI which it does not already own. BT stock rose yesterday in anticipation that BT will make a profit on its 20% share of the US's #2 long distance carrier. Title: Would WorldCom-MCI Deal Lift Tolls on Net? Source: Wall Street Journal <http://wsj.com/> (B1) Author: Thomas Weber & Rebecca Quick Issue: Mergers Description: If WorldCom is successful in its bid to buy MCI, the resulting company may be within reach of dominating "the innards of the Internet." The company would control 60% of all US traffic on the global computer network and a large share of the traffic world wide. That control could allow WorldCom to raise prices for Internet use. Earlier this year, WorldCom started charging small Internet service providers for connections to its network. WorldCom's vision is to change the traditional, "funky commune" approach to exchanging data between ISPs (called peering) and turn it into a capitalistic one. "Ultimately, that could signal the demise of the ubiquitous $19.95-a-month unlimited access plans." Title: WorldCom Bid Raises Question: Who's Next? Source: Wall Street Journal <http://wsj.com/> (C1) Author: Susan Pulliam Issue: Mergers Description: On Wall Street, the hot properties are competitive local exchange carriers (CLECs), the companies building networks to compete for local phone customers against incumbents like GTE, Bell Atlantic and other Baby Bells. WorldCom (an obscure teleco interest from Malaysia) has purchased two big CLECs recently (MFS Communications and now Brooks Fiber) and its bid for MCI has pushed up the stock for Sprint as some guess that British Telecom may make a bid for the #3 long distance carrier. Title: WorldCom Stages $30 Billion Takeover Bid for MCI Source: Telecom AM <http://capitol.cappubs.com/am/ > Issue: Mergers Description: WorldCom's takeover bid would result in the biggest merger in US corporate history -- larger than Bell Atlantic/NYNEX ($25.6 billion) and RJR Nabisco/Kohlberg Kravis Roberts ($25 billion in 1989). WorldCom's CEO Bernie Ebbers says, "It is a superior offer to MCI shareholders to merge with our company. We are offering a higher price, a higher premium, and a higher performing stock than BT," Ebbers said, underscoring the "common sense" he said the merger makes. "This is a shareholder issue. This is not a management ego issue. This is what is best for shareholders." Referring to MCI shareholders' interests, Ebbers was boastful of WorldCom's financial performance since going public in 1989, especially as contrasted with BT and MCI. "If you had invested $100 in WorldCom in 1989, it would now be worth $3,122. That same $100 invested with BT in 1989 would be worth $190; with MCI it would be worth $130. You aren't going to find many shareholders who object to the kind of numbers being offered." Title: WorldCom Rising Fast by Acquisitions Source: Washington Post (A1) <http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/124l-100297-idx.html> Author: Paul Farhi Issue: Telecommunications Merger Description: Worldcom Inc., a 14-year old long distance company based in a Southern city, has made a surprising $30 bill. bid for MCI Communications Corp. This low-profile company is actually an aggressively expanding one, due to many other company buyouts. Worldcom's CEO, Bernard Ebbers, wants to place his company at No.2 in the long distance business, with only British Telecommunications in the way. Despite their low-key status in the game, Ebbers was confident when he jokingly said, "After we finish the deal with MCI we might acquire BT." Title: Upstart Rival Surprises MCI With $30 Billion Merger Bid Source: Washington Post (A1) <http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/109l-100297-idx.html> Author: Mike Mills Issue: Telecommunications Merger Description: Proposing what could be known as the highest-priced merger in history, Worldcom, a low-profile LD company based in Miss., made a last-minute bid of $30 billion in common stock currency for Washington-based MCI Communications Corp. in an effort to wrest it away from British Telecomm. PLC, who also had plans to buy the company. The allure of the offer hinges on the steady strength of Worldcom's stock. Combined, MCI and Worldcom would become the No.2 long-distance giant, right behind AT&T. The companies together would carry more than half of the Internet's traffic, and be more than ready to take on the Bell regional companies. Worldcom said that service would be unchanged, but wouldn't comment on the possibility of layoffs at MCI. Nevertheless, the record-breaking merger has analysts anticipating the arrival of competition in the monopolized local phone market. Title: A Stock Response Source: Washington Post (C1) <http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/186l-100297-idx.html> Author: Brett D. Fromson Issue: Telecommunications Merger Description: Worldcom plans to buy MCI for about $30 bill. through simply issuing more shares of common stock and then exchanging them for all the outstanding MCI shares. This is a "deal for 90's", where common stock shares are the currency of choice in mergers. The willingness of sellers to accept shares in companies like Worldcom is the fuel behind this huge bid. Raghu Ram, a telecom services analyst in N.Y. for Wheat First securities said, "You can do a deal without any financing as long as you have currency the other company will take, and the best telecom currency stock today is Worldcom stock." Worldcom executives plan to exchange slightly more than one share of Worldcom for every share of MCI. If their stock declines before the deal is done, they would increase the number of shares to be traded for each share of MCI, i.e. Worldcom wants to give MCI shareholders 45% of the new company in exchange for their 100% ownership in MCI. Title: Upstart Offering $30 Billion To Buy MCI, Using Stock Source: New York Times, A1,D4 <http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html> Author: Mark Landler Issue: Telecommunications Description: Worldcom Inc. put in an offer yesterday to buy MCI for $9 billion more than the one put forth by British Telecommunications. Analysts believe that Worldcom's proposal could possibly pull MCI away from a merger with British Telecommunications. Title: A Long-Distance Visionary Source: New York Times, D1,D4 <http://www.nytimes.com/yr/mo/day/news/financial/worldcom-profile.html> Author: Steve Lhor Issue: Telecommunications Description: Bernard J. Ebbers, the chief executive of Worldcom Inc., has helped pull together approximately 50 successful acquisitions to make Worldcom the nation's fourth largest long-distance carrier. They are being called by analyst "the communications company of the future" based on their push to digitize telecommunications. A large part of Worldcom's recent purchases has been based around their desire to build up a successful digital network. "Worldcom's long-term strategy is to be an 'integrated supercarrier,' a one-stop supplier of all manner of telecommunications services." ********* (c)Benton Foundation, 1997. Redistribution of this email publication -- both internally and externally -- is encouraged if it includes this message. The CPP News-Clipping Service is posted to the Benton e-mail lists Monday through Friday. The Headlines are highlights of news articles summarized by staff at the Benton Foundation. They describe articles of interest to the work of the Foundation -- primarily those covering long term trends and developments in communications, technology, journalism, public service media, regulation and philanthropy. While the summaries are factually accurate, their often informal tone does not represent the tone of the original articles. To join the Benton Communications Policy Mailing List, send the following command to [EMAIL PROTECTED]: subscribe benton-compolicy To join the Up For Grabs list send the following command to [EMAIL PROTECTED]: subscribe [EMAIL PROTECTED] (i.e. subscribe [EMAIL PROTECTED]) If at any time you would like to unsubscribe from the Benton Communications Policy Mailing List, please send the following command to [EMAIL PROTECTED]: signoff benton-compolicy If at any time you would like to unsubscribe from the Up For Grabs Discussion List, please send the following command to [EMAIL PROTECTED]: unsubscribe [EMAIL PROTECTED] (i.e. unsubscribe [EMAIL PROTECTED]) If you have any problems with the listserv or any questions about the postings, please direct them to [EMAIL PROTECTED]
